Jan. 15, 2013 – NAFCU President Fred Becker said the association strongly supports the CFPB’s proposal to delay implementation of its international remittance rule but said it does not believe the delay will “constructively or completely solve” problems created for credit unions.
NAFCU has been urging a delay in the rule, plus a broader exemption than now stated, since last year. The CFPB has proposed a delay of 90 days past the original Feb . 7 effective date; this would apply to proposed amendments and the entire rule.
However, half of credit unions responding to a recent survey will have to comply with the new rules, according to NAFCU’s Economic & CU Monitor, slated for release later today.
In a comment letter Monday, Becker urged that the CFPB:
- further extend the 90-day delay of the effective date to give credit unions enough time to comply and to make the required disclosures of fees, taxes, and exchange rates; and
- exempt from the final rule federally regulated credit unions, or, alternatively, small entities consistent with the Small Business Regulatory Enforcement Fairness Act – those with up to $175 million in assets.
Becker warned anew that the regulatory burden this rule places on credit unions will bring a “significant reduction” in consumers’ access to remittance transfer services. Many credit unions already facing enormous compliance burdens either have or will be forced to discontinue their remittance programs, and others will be forced to significantly increase fees to members, he said.
He also urged that the CFPB address credit union concerns during the rulemaking process rather than after. “Although NAFCU appreciates the CFPB’s responsiveness to reconsider the remittance rule, proactive efforts by the CFPB . . . would be far more effective when conducted prior to and during the rulemaking process,” he wrote.